Advice for first time buyer

[terryh]

If you are lookiing at a condo, you need to protect yourself. What you are doing is joining a bunch of strangers in a million dollar investment; therefore, demand to inspect all condo documents including articles of incorporation and the financials going back at least five years.

A condo complex is required by state law to have at least 10% in reserve in case of some crazy act of god ... if there are a lot of units in arears, then any remaining co-owners will be required to pony up the difference.

So for example, it is a 15 unit complex, the maintence of the grass, utilities for the outside lights, window cleaning, snow removal, vaccuuming of common areas etc ... all that adds up to X divided by 15. If 5 units are empty and no one is paying the dues on the empty units, you divide X by 10 plus the extra missing from the reserve.

The low cost of a condo and carefree nature of life can be sweet, but if you get mixed in with a bunch of folks who are going belly up, you will discover the true meaning of pain.

Ahhh something to chew on thank you very much.One is currently owner occupied, the other I believe is empty,and I noticed another unit for rent...some specifics to look for in the articles of incorporation and financials?